Title

Timing and Selectivity of Mutual Fund Managers: An Empirical Test of the Behavioral Decision-Making Theory

Document Type

Article

Publication Date

6-1-2006

Description

Classical decision-making theory suggests that decisions made by an individual or a team of decision makers should lead to the same performance outcome. Conversely, behavioral decision-making theory argues that decisions made by teams result in superior micro or macro forecasts and performance outcomes. Our tests using mutual funds support the classical decision-making theory. The empirical results are time invariant and robust with respect to the selected index or model specification.

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